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Parish Finance CouncilGuidelines

Catholic Diocese of Arlington

Parish Finance Council Guidelines

GE:t'>.TERAL

This document is intended as an overview of the responsibilities and roles of Parish FinanceCouncils as defined by Canon Law and best practices of parish administration. An active andwell-formed Parish Finance Council is an important and necessary support to the pastor infulfilling his duty of being a good steward of parish resources. A Parish Finance Councilsupports the good governance of a parish and helps there be accountability to the diocese and tothe parishioners.

These guidelines are designed to aid pastors and Finance Council members in the establishmentand productive functioning of the Parish Finance Council and to assist in the administration ofparish temporal matters. Also contained in these guidelines is the basic framework of a systemthat will provide information to assist members in fulfilling their responsibilities.

Table of Contents

Introduction and Background 3

Authority /Responsibilities 00 ••••••••• 0. 0 0 ••••• 0 ••••••••••••••••••••••••••••• , •••••••••••••••••••••••••••••••••••••• 4

Membership 0 ••• 0 ••• 0 ••••• co c ••••••••• c •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••.••••••••• 6

Meeting Protocols 8

Relationship to Pastoral and Other Councils 9

Appendices

Canon Laws Related to Temporalities 10

Sample Parish Finance Council Meeting Agenda ····13

Sample Parish Finance Council Proposed Calendar .~ 14

Sample Parish Finance Council Charter ··..··· ···················· 15


INTRODUCTION AND BACKGROUND

In the administration of temporal goods of the parish, Canon 532 defines the role of the pastor asthe authoritative representative of the parish. Canon 532 says,

'The pastor represents the parish in all juridic affairs in accord with the norm of law; heis to see to it that the goods of the parish are administered in accord with the norms ofcanons 1281-1288."

Canon 537 introduces the Parish Finance Council as a mandated body having an advisory andconsultative role with the pastor. Canon 537 says,

"Each parish is to have a finance council which is regulated by universal law as well asby norms issued by the diocesan bishop; in this council the Christian faithful, selectedaccording to the same norms, aid the pastor in the administration of parish goods withdue regard for the prescription of canon 532."

Every parish therefore is required, both by adherence to the Code of Canon Law and diocesanregulation, to have a Parish Finance Council. To be effective, the Parish Finance Council shouldmeet regularly with specific agendas and should have access to all the relevant financialinformation and policies of the parish.

Consultative Body to the Pastor

The Finance Council works closely with the pastor, who is accountable to the diocesan bishopfor the administration and stewardship of the temporal goods of the parish. The pastor~ __ .,_...re£p.ousibililie§ •.J!ccordingJiLC@on Law..•.ID,!::14df{. the res onsibility for JLarish financial and _t~ID.ILQr~l.nlgn!!~ment..Thf.£arisl!£illanse.,fo1!!!Sil is !!...£9nsultativebod that assists the astorj.Q.1'l}~t!:QK!J!~§'~QQUg~tioJ11L_w.hjJ~.m~.fill:j§h.fm@.£.e_Colill.cij"Q9t1~.P'QLb.~Y~Jj~~i£tQJ:!m;:j:kiIlg.ltutbotitJ[,_g)llsultatioll is at th~h~11.Qf.J:h~ decision-maki1]g rocess - sharingjnformatio1].,l_

.li_~~iQ&.£9}!Jril;m.t@gto ,the discussion~l!nd romotin. c<l~~:_

Canon law states that the astor is obligated to consult the Finance Council on certain matters.__1:\I.iliQ~~~~,p~~!Q!.isg2!_2.~~~g!::~..~~f2Jlg~,"!!!~.£e..£2~!P.:~~~ti9..I!:~....2~~~e._£!g~<?eC?~E~!.~...!h~~,".,._p~!Q.rg~!1~~~lYshould not act a ai!tJ?tsuch ~~vice,.!:~eciall _when th~re i~~~!t~ll~less..there is anoverridin reason. In other words, the rodent astor would not i ore the advice of--the Finance Council unless there was a serious reason to do so. When actin&.contrary to its.~·r~£9~JPe~~~ti~.!i.!h~~Qo~~!or=~ho~fiP!.()Y.T~~_<:tg~~~~t.I?n.~?·~i.~~i~~~~.~()~.n<:ilre$~di;g .the=~~,!§oI).sf<?£.!11~de~ision.



AUTHORITY I RESPONSmILITIES

Canon Law places responsibility for parish financial and temporal management with the pastor.The Parish Finance Council is a consultative group that assists the pastor in the execution ofthese responsibilities. In order to be effective in their responsibilities as Council members,members should have a thorough understanding of the parish's mission, goals, structure anddemographics; knowledge of diocesan statutes and policies regarding temporalities; and ageneral understanding of the structure and organization of diocesan finances. It is the pastor'sresponsibility to provide appropriate background information and periodic enrichment aboutrelevant subjects to all Council members.

The Finance Council does not have decision-making authority. The Council has only those duties_at.l:£r~~.2nsiQili!!,~s en~Ql!ed~Y_£~9!L~_~E_,Il~,~i,,@,~~~2_i!~12Y. the,J~_a_s!Of"'~,~~~~~,. ,"Council, composed of members with the appropriate expertise and possessing a love for the

-ChiirchJ;U1~lits.~can:Jirovide·ihe ~ astor'wlth'vai~a1:?le advice iilld assistance in the ...-,execution ofhis P!l!!Sh.f!!~!:lI!gal_~gmi1!!~tJJ!.ti9ngQtie.§:_A£91!Ulel?1J!..EimLn.C~_C.9uuciLals_Qc.an_"...-help a parish ma~i.gIiz.e its financial resources and avert otential financiail2roblems. Pastors are _s1!0nglY.~~,~?~~~&'~~J9_!.~e(l<!YE!!~g~_2f.the_co~~l ang .~epI2.vide<!J~y. th~_fjpanc_~~,,,,.CoimciC---

The principal duties of a typical Parish Finance Council are to assist in creating and/ormonitoring:

A. Annual Capital and Operating Budget• Assist in establishing timelines for development and implementation of the annual

capital and operating budget for parish operations, schoolis), other parishorganizations and consolidated operations as required by the parish. The pastor isresponsible for the actual coordination/preparation of all parish budgets. Thepastor is encouraged to elicit the assistance of the parish businessmanager/bookkeeper to prepare the parish budget, as well as, the advice of theFinance Council.

• Determine if the parish and school budgets are prepared in accordance with theaccounting chart of accounts and reporting formats required by the Diocese.

• Review the annual parish, school(s), significant organizations and consolidatedcapital and operating budgets; and, make recommendations to the pastor forchanges as appropriate.

B. Financial Records and ReportingIi Review financial statements, including annual reports, to help determine that

diocesan policies regarding fiscal and accounting procedures are being followed.• Receive and review income and expense reports for the parish and school at least

quarterly. Whenever possible. current year res~ts ~~ould be compared with thecurrent year budget and prior year results. All significant .vanances.should b~explained. Particular attention should be given to expenditures not mcl~ded III the

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recommend budget amendments to bring revenues and expenditures into balance.• Review the annual financial report to the Diocese prior to submission to help

determine the accuracy and completeness; and, that the report is submitted by theprescribed due date.

• Review, at least annually, the financial statements and verify the cash balances ofall parish organizations have been reconciled.

• Assist in preparing/presenting/communicating an annual financial report (BalanceSheet and Statement of Activity) to all parishioners concerning the parish'sfinancial status. Specific information should be included on parish operations,parish school(s) and other parish organizations/fund raising groups/projects asneeded, in addition to consolidated results.

iii Monitor payments of all loans and diocesan assessments to determine that allpayments are accurate and paid on a timely basis.

• Monitor parish contribution trends.

C. Strategic Planning• Assist the pastor in developing a long-term parish capital improvement,

implementation and funding sources plan.o Assist the pastor in developing a program for the care and maintenance of all

parish facilities.• Assist in the development and maintenance of position descriptions for the parish

business managerlbookkeeper and other staff level personnel engaged in themanagement, operation or administration of the parish.

• Serve as a resource to advise the pastor on significant expenditures before makinga purchase or lease commitment.

D. Internal Controls• Assist in developing a system of internal controls in accordance with diocesan

policy.• Review/audit the financial reports for parish general operations, parish school( s)

and other parish organizations/fund raising activities with bank accounts, asdeemed necessary. to determine that proper accounting practices and internalcontrol procedures have been implemented and are being followed.

• When a change of pastor or parochial administrator occurs, assist with providingthe new pastor or administrator a complete report of the parish's financialcondition.



MElMBERSIllP

The Parish Finance Council is about the life of a community of faith so its members should beconfirmed practicing Catholics, representing the diversity of the parish as a whole. The pastoruses his discretion in selecting reputable, qualified members from the parish community. Sincethe Finance Council serves in an advisory capacity to the pastor, the pastor is an ex -officiomember of the Parish Finance Council. Ideally, members shall have a limited term to provide forboth continuity and rotation.

1. RepresentationMembers should be selected from the parish community and reflect its diversity.Where appropriate, outside advice and counsel may also be engaged to obtain neededspecific expertise.

Members should be chosen based on skills or expertise in management and/or finance.Skill sets to consider include business, law, accounting, and communications.Additionally, persons with professional knowledge and experience in banking,computer systems, fundraisers, marketing, property management, engineering,construction, maintenance, and purchasing could also make a significant contributionand should be recruited when available. Expertise can vary widely and include abusiness executive, accountant, lawyer, and small business owner. Prospectivemembers should have demonstrated financial and business management backgrounds.

2. Number of MembersThe Council should have at least three members and it would be wise to have no morethan nine members to prevent its operations from becoming unmanageable. Since it isan advisory body, a quorum is not an issue. However, for matters of greater importance,it is wise to ensure that there is an actual majority of the members present.

3. OfficersThe person who chairs the meeting should do so in a parliamentary manner at allmeetings and, in consultation with the pastor, will be responsible for selecting the timeand location of meetings, preparing and providing the meeting agenda in advance of themeeting, and any other duties so assigned by the pastor or the committee.

A secretary should be appointed to record minutes. Minutes should be a record ofrecommendations made to the pastor, rather than a record of the discussion which takesplace.

4. Conflict of Interest I Preclusion to MembershipNo parish employee or family member of an employee or relative of the pastor orany parochial ViC3ISmay serve on the Finance C?Ullcil. Suc~ pe~ple, however, mayassist in an advisory capacity. To the extent possible, parochial VIcars should beinvited to attend meetings as a way of exposing them to the administration of thetemporalities of the parish.



Members of the Finance Council should not serve in other capacities in the parishwhich would conflict with their duties as members of the CounciL

On an annual basis, Parish Finance Council members should confirm, in writing,that there are no known conflicts of interest, or disclose any potential conflict ofinterest, such as a financial interest that the individual, or a member of theindividual's family, has in an entity that transacts business with the parish. In theevent a change in circumstances gives rise to a real or potential conflict of interest,the situation should be disclosed in writing and submitted to the pastor in a timelyfashion.

5. Role of Parish EmployeesParish employees should not be considered for membership of the Parish FinanceCouncil; however, they may serve as staff to support the Finance Council, and should beavailable to answer questions regarding parish programs, accounting, financial reporting,and internal controls. The Finance Council should be provided with relevant and timelyinformation, including financial reports (balance sheet, income statement, budget toactual comparisons, debt service schedules, investment schedules, and status reports onfundraising activities) to review. The parish accountant (or business manager orbookkeeper) should normally attend meetings and be able to assist in answeringquestions, and illuminate complex transactions and the reporting thereof.

6. TenusMembers should be appointed for fixed terms. It is helpful to stagger the terms so thatthere is continuity of service and no disruption to the function of the Finance Council.Terms should be limited, but not so limited as to impede the effectiveness of themembers. Three years, for example, would be a reasonable term of service, with potentialof three reappointments.

If the pastor is incapacitated, or reassigned. the Parish Finance Council should continueworking for the benefit of the parish and to provide continuity throughout the transition.The newly assigned pastor has the option of confirming the members of the Council, ormay elect to recreate it. Ordinarily, however. it would be unwise simply to dismiss themembers without having worked with them for a period of at least some months.

Since it is consultative to the pastor, the Council ordinarily should not meet without thepastor present. If it becomes evident that the pastor is missing meetings unduly andwithout what appears to be a valid cause, the members of the Council have a duty tonotify the Diocesan Finance Officer about that fact. Given the consultative nature of theParish Finance Council, the pastor should be engaged in the proceedings of the ParishFinance Council meetings ..

The pastor would always retain the right to remove a member of the Finance Councilprior to the expiration of his or her term of appointment. Ideally. removal should alwaysbe for a substantive cause, e.g. missing a majority of the meetings.



MEETING PROTOCOLS

1. Scbeduling of MeetingsMeetings should be scheduled in advance for a specified period, typically a year.Meetings should be held no less frequently than once a quarter. More frequent meetingsare an option, especially if local circumstances dictate. As the purpose of the ParishFinance Council is to provide advice and support to the pastor, the pastor should bepresent at all Parish Finance Council meetings.

2. Use of Agendas and Review MaterialsMeeting agendas should be prepared in advance of the meeting by consultation betweenthe pastor and Parish Finance Council Chair, as well as assigned staff. The agenda shouldlist the major items for discussion. Supplying information in advance to members willlead to more productive meetings.

3. Recording of Meeting MinutesMinutes should be recorded by the Parish Finance Council secretary, circulated amongthe members for their review and officially accepted by majority vote. They should bearchived as part of the parish permanent record.

4. ConfidentialityMembers are obliged to maintain confidentiality on those matters designated asconfidential, including employee salaries and parishioner contributions. Materials such asagendas, meeting minutes, and review materials should not be disclosed to others ifdesignated as confidential. Violation of this confidentiality would be a cause fordismissal of a member.

5. Record RetentionThe parish should retain meeting minutes, agendas, handouts, reports and materialsreviewed during the meeting for future reference by either internal or external parties.



RELATIONSHIP TO PASTORAL AND OTHER COUNCILS

Since the Parish Finance Council relates to the administrative responsibilities of the pastor, itshould not be a part of the Parish Pastoral Council structure. However an officer from the ParishFinance Council may serve as an ex-officio member of the Parish Pastoral Council.Communication between the two councils is essential to share information regarding the parishfinances and to implement pastoral plans.

The Finance Council is distinct from the Parish Pastoral Council. An appropriate means ofcommunication should be developed between the Parish Finance Council and the ParishPastoral Council. This should be done so as to ensure that the Parish Finance Council does notenter into areas of policy and mission, which are the prerogative of the Parish PastoralCouncil. The Parish Finance Council advises on the adequacy of resources to accomplish themission of the parish, and on the financial policies and procedures, such as internal controls.

An appropriate means of communication should be developed between the Parish FinanceCouncil and other parish boards and parish councils. It may be useful to assign a liaisonbetween councils. The Finance Council should interact with parish groups/councils to study,create, and revise plans for the effective management and use of parish. resources.


CANON LAWS RELATED TO TKMPORALITIES

Canon 532In all judicial matter, the parish priest acts in the parish, in accordance with the law. He is toensure that the parish goods are administered in accordance with canons 1282-1288.

Canon 537In each parish there is to be a fmance council to help the parish priest in the administration of thegoods of the parish, without prejudice to Canon 532. It is ruled by the universal law and by thenorms laid down by the diocesan Bishop. and is composed of members of the faithful selected bythese norms

Canon 1281With due regard for the prescriptions of their statutes, administrators invalidly posit acts whichgo beyond the limits and procedures of ordinary administration unless they first obtain writtenauthority from the ordinary.

The acts which go beyond the limits and procedures of ordinary administration are to be definedin the statutes; if, however, the statutes do not mention such acts, it is within the competence ofthe diocesan bishop to determine such acts for persons subject to him after he has heard thefinance council.

Unless and to the extent that it is to its own advantage, a juridic person is not held to answer foracts invalidly posited by its administrators. A juridic person, however, is responsible for actsillegitimately but validly posited by its administrators with due regard for the right to sue or tohave recourse against administrators who have damaged it.

Canon 1282All clerics or lay persons who through a legitimate title take part in the administration ofecclesiastical goods are bound to fulfill their duties in the name of the Church and in accord withthe norm of law.

Canon 1283Before administrators take office:

• They must take an oath before the ordinary or his delegate that they will be efficient andfaithful administrators;

• They are to prepare, sign and subsequently renew an accurate and detailed inventory ofimmovable goods, movable goods, either precious or of significant cultural value, orother goods along with a description and appraisal of them;

• One copy of this inventory is to be kept in the archives of the administration; the other, inthe curial archives; any change whatever which the patrimony may undergo is to be notedon each copy.



Canon 1284All administrators are bound to fulfill their office with the diligence of a good householder.

For this reason they must:

• Take car~ that none o~ ~e goods entrusted to their care is in any way lost or damaged andtake out Insurance policies for this purpose, insofar as such is necessary;

• Take care that the ownership of ecclesiastical goods is safeguarded through civilly validmethods;

• Observe the prescriptions of both canon and civil law or those imposed by the founder,donor or legitimate authority; they must especially be on guard lest the Church be harmedthrough the non-observance of civil laws;

• Accurately collect the revenues and income of goods when they are legally due,safeguard them once collected and apply them according to the intention of the founderor according to legitimate norms;

• Pay the interest on a loan or mortgage when it is due and take care that the capital debtitself is repaid in due time;

• With the consent of the ordinary invest the money which is left over after expenses andwhich can be profitably allocated for the goals of the juridic person;

• Keep well-ordered books of receipts and expenditures;• Draw up a report on their administration at the end of each year;• Duly arrange and keep in a suitable and safe archive the documents and deeds. upon

which are based the rights of the Church or the institution to its goods; deposit authenticcopies of them in the archive of the curia when it can be done conveniently.

It is strongly recommended that administrators prepare annual budgets of receipts andexpenditures.; however, it is left to particular law to issue regulations concerning such budgetsand to determine more precisely how they are to be presented.

Canon 1285Within the limits of ordinary administration only, it is permissible for administrators to makedonations for purposes of piety or Christian charity from movable goods which do 110t pertain to-the stable patrimony.

Canon 1286Administrators of goods:

• Are to observe meticulously the civil laws pertaining to labor and social policy accordingto Church principles in the employment of workers;

• Are to pay employees a just and decent wage so that they may provide appropriately fortheir needs and those of their family.

Canon 1287Both clerical and lay administrators of any ecclesiastical goods whatsoever which have not beenlegitimately exempted from the governing power of the diocesan bishop are bound by their office



to present the local ordinary with an annual report, which in turn he is to present to the financecouncil for its consideration; any contrary custom is reprobated.

Administrators are to render an account to the faithful concerning the goods offered by thefaithful to the Church, according to norms to be determined by particular law.

Canon 1288Administrators are neither to initiate nor to contest a lawsuit on behalf of a public juridic personin civil court unless they obtain the written permission of their own ordinary.

Definition: A juridic person is an artificial person constituted by competent ecclesiasticalauthority for an apostolic purpose, with a capacity for continuous existence and with canonicalrights and duties like those of a natural person. Like a civil-law corporation, it is a legalconstruct which can and must be conceived of apart from the natural persons who constitute it,administer it, or for whose benefit it exists. Of its nature, a juridic person is perpetual and, onceestablished, it can outlast all natural persons or material goods which formed it.



Sample Parish Finance Council Meeting Agenda

(Parish Name)Finance CouncilMeeting on (Date)(Location) - (Time)

L Opening Prayer2. Review and approve minutes of Prior Meeting3. Review Meeting Agenda4. Review Financial Statement

• Observations/Questions• Identification and discussion of unusual items• Discuss significant variances from budget

5. Review other financial reports/information (examples)• Loan Report• Bank Accounts• Offertory Trends

6. Committee Reports (examples)• Building and Grounds• FundraisinglDevelopment~ School Committee• Offertory Program

7. New Business

8. Consideration of the Agenda for the next meeting

9. Closing Prayer

Member InformationInformation to be mailed to members no less than 7 days in advance of meeting:

• Agenda• Minutes from prior meeting• Most current financial statements

a. Balance Sheetb. Income Statementc. Cash Flowd. Budget Analysis/V ariance Report



Sample Parish Finance Council Proposed Calendar

- -

-: -:-:"-Mont"-- _ .. ~ _ ,~~="~,,".?,,..~,..,.,,_._.•_.,,~_--"-.....,Agenda-- .,. '" "-~"'~-." -."", ,..."""'--.,.•••.----,-~ .••• ~-<.~'='

•••••.~Si:., •.• ,"P"<_~,!.-i4..,-i$..;r.••i!;.:~"~,~',._V",","'-"-'V'\'~ •• ,,- ~ - -

• Yearly review - Financial Performance vs. BudgetJuly • Election of officers andlor members for the current fiscal year

August e Review and sign annual Financial Report to the Diocese

September • Review and approve annual Financial Report to Parishioners

• Quarterly review - Financial Performance vs. budgetOctober • Offertory Program--_.

November

December

• Quarterly review - Financial Performance vs. budgetJanuary • Semi-annual report due to Diocese

• Facility needs reviewed

February • Bishop's Lenten Appeal

• Begin Budget Process - determine goals with pastor, review parishMarch staffing requirements and program needs.

• Quarterly review - Financial Performance vs. budgetApril • Submit Draft 1 of Parish Budget to Finance Council

• Submit final draft of budget to Finance CouncilMay • Develop annual calendar of meetings and action items

June • Pastor presents budget to staff



SAMPLE PARISH FINANCE COUNCIL CHARTER

CHURCH OF

(PARISH) (CITY)

ARTICLE I - NAlvlE AND PURPOSE

ARTICLE ll- STRUCTURE, ~AEMBERSHIP, AND OFFICERS

ARTICLE nr- MEETINGS

ARTICLE IV - DUTIES/RESPONSIBILITIES

A. BUDGETS

B. FINANCIAL RECORDS AND REPORTING

C. STRATEGIC PLANNING

D. INTERNAL CONTROLS

ARTICLE V - CONFIDENTIALITY

&2 £ • r

Catholic Diocese of ArlingtonL& n


SAt\ttPLE PARISH FINANCE COUNCIL CHARTER

CHURCH OF

(PARISH) (CITY)

The Parish Finance Council (hereinafter referred to as "Council") is established pursuant to therequirements of Canon 537 of the 1983 Code of Canon Law for the Roman Catholic Church and,is subject to the provisions of Canon Law. The Council exists to assist the pastor in theadministration of the goods of the parish. The Council is accountable to the pastor.

The Council is envisioned as consisting of a select group of parishioners known for their spiritualmaturity and love of Christ and the Church, endowed with special competence in financialmatters and with prudent judgment. This group should offer their time and talents in Christianservice to assist the pastor with the development and management of the parish's financialresources so that the parish may effectively pursue its proper mission of spreading Christ'sGospel and love.

The Council must senre in accord with the Gospel, over any secular business philosophy,Efficient use of resources and money management, in the context of the Catholic Church, mustbe measured primarily by the ability to nurture and foster the Christian mission and ministry ofthe parish community and diocese. A truly Catholic understanding of the mission of the Churchinsures "good business practices".

ARTICLE II - STRUCTURE, MEMBERSHIP, AND OFFICERS

1. Appointment of Council members shall be made by the pastor as determined by him or asrecommended to him by members of the parish. Members must be active Catholicparishioners in good standing with the Church. When a pastor changes, the new pastor is tomeet with the current Council. Within 90 days, the pastor is to decide whether to reappointthe Council's current membership to complete the balance of the respective term of office orto appoint new members to complete the respective term of office of each replaced Councilmember.

Members should be skilled in business and have some expertise in management, finance,accounting, law, fundraising, or related fields. The membership of the Council is not toinclude anyone who could have a conflict of interest from any affiliation including a parishstaff member or any relative of the pastor up (Canon 492 §3, by extension).

2. There shall be at least three (3) appointed members (Canon 492 §1, by extension). Moremembers may be added up to nine (9). Appointed members shall serve for three years. The



terms of the Council will be staggered to ensure continuity. Upon initial formation of theCouncil, the pastor shall designate either a one, two, or three year term. in succession, foreach appointed member. Thereafter, members who are appointed or re-appointed shall servefor three years.

Pastors should include the parish business managerlbookkeeper and should considerincluding other staff resource persons, such as the school principal, in meeting discussions.If present at meetings, these individuals do not vote.

The Parochial Vicar( s) are encouraged to be present at all meetings.

3. The pastor may remove a member from the Council at any time for cause. Cause is defmedhere as no longer being a member of the parish, physical or mental incapacitation, publicnon-support of Church teaching or participation in public scandal, or acting contrary to theCode of Canon Law of the Catholic Church andlor rules and regulations of the Diocese ofArlington. However the pastor retains the authority to remove andlor add members at will.

4. The pastor shall preside at all meetings. If the pastor cannot attend, the meeting either mustnot take place, or may take place with the pastor's prior permission and subsequent positiveor negative acknowledgement of recommendations made to the pastor. Any meeting heldwhen the pastor is not present or that has not granted proper permission is to be considerednull and void.

5. The Council should have the following officers: Chairperson and Secretary. Officers may bere-appointed or re-elected by July 1st of each year.

a. The chairperson assists the pastor, who presides at all meetings, and in consultationwith the Pastor, is responsible for selecting the hour and location of meetings,preparing the meeting agenda and effecting any other duties assigned by the pastor.

b. The secretary is responsible for the recording and distribution of Council meetingminutes, notifying members of upcoming meetings, maintaining a permanent recordof business conducted by the Council and each member's tenure, and any other dutiesassigned by the chairperson or the pastor.

6. The Council may establish committees, either standing or ad hoc, to assist in carrying out itsresponsibilities.

ARTICLE III - MEETINGS

1. Regular meetings shall be held at least quarterly, more frequently if necessary, at a time andplace established by the pastor and chairperson. Special meetings may be called by thepastor or the chairperson, with the pastor's concurrence.

2. An annual calendar of meetings and outline of major action items should be proposed andagreed upon at the first meeting of each fiscal year (see Article IV Duties/Responsibilities).


Parish Finance Council Guidelines •

3. The agenda and study material should be communicated to the members prior to the regular

meetings. .' . h Id4. The secretary is responsible for taking minutes at each Council meetmg. The mmutes s ou

be kept as a permanent record.

ARTICLE IV - DUTIES/RESPONSIBILITIES

A. BUDGETS1. Assist in establishing timelines for development and implementation of the annual c~pital

and operating budget for the parish, the school, parish org.ani~ations, and ~emetery (If.applicable). The pastor is responsible for the a~tual coordmat~onlpr~p~ratlOn o~ all panshbudgets, but is to seek the advice of the Council. The pastor 1..<; to elicit the assistance of theparish business manager, bookkeeper andlor Parish Finance Council Chairperson to preparethe parish budget. Parish organizations should present their plans and a summary o~ expectedcash receipts and disbursements to the Council during the budget cycle. All are an integralpart of parish life and provide services to parishioners and/or general operations/specialfunding. Financial statements shall be submitted to the Council at least quarterly.

2. Determine if the parish and school budgets are prepared in accordance with the chart ofaccounts and reporting formats required by the diocese.

3. Review the proposed annual parish, school, and organizations' capital and operating budgets;and make recommendations to the pastor for changes as appropriate.

B. FINANCIAl RECORDS AND REpORTING

1. Review financial statements, including annual reports, to help determine that diocesanpolicies regarding fiscal and accounting procedures are being followed.

2. Review monthly and/or quarterly income and expense reports for the parish and school.~enever possible, compare actual results to budget and prior year numbers. All significantvanances should be explained with particular attention given to expenditures not included inthe capital or operating budget. The Council should recommend budget amendments to bringrevenues and expenditures into balance or propose a plan to correct the problem(s).

3. Review the annual financial report, prior to submission to the Diocese, to help determine theaccuracy and completeness; ensure that it is submitted by the prescribed due date.

4. Ann~ally,.after the end of the fiscal year, each pastor is asked to send a letter together withthe financial report to the bishop containing:

a. the names and professional titles of the members of his parish finance council;b. the dates on which the parish finance council has met during the preceding fiscal year

and since the end of that fiscal year;c. a statement signed by the parish finance council members and the pastor stating that

they have met, reviewed, and discussed the financial report of the parish, and that itincludes all parish related matters, and is accurate and complete.

S. Review, at least annually, the financial statements and verify the cash balances of all parishorganizations with cash accounts. Make sure all accounts for the parish and for each parishorganization are included on the annual financial report.


ParishFinancecouncilGui~el~e:....... ---~ d~~~~~-=- . etual care must be properly accounted for an c

a. Cemetery perp . (Statement ofother p~1iose. . ommunicating an annual f~anctal repo~.. rmation should

6. Assist in prepannglpresentmg/c f Activity) to all parishIOners. SpecIfIc infoFinancial Position and Statement 0 eter . .be included on the pari~h, s~hool ~d cem"'nt/ior all parish bills end/or obhgatIOns.

7. Monitor accuracy an~btI~eh~:~d~ :;:~ying sources of parish rev~nu~: :ak;evelopment of8. Monitor paris~ contn u 1~~ .ning and enhancing palish revenue, assist in e

recommendations for mam at dinate funillaising programs.progranls and processes to that en~, ~nd coor and expenditures for the parish, school, and

Oversee and review fundralsmg programsa. . .affiliated groups/organlzatlOns.

c. STRATEGIC PLANNING . . .. arish capital improvement plan, mcludmg

1. Assist the pastor in devedl?pmg a long-term P .implementatio.n and fun mg sources. c th and maintenance of all parish facilities.

. d eloping a program lor . e care .2. Assist ~e pastor in ev .. . ance of osition descriptions for the parish busmess

3. ~::~:::o::~;:::~t~~~:~=~~rsonnel ~ngagedinthemanagement,operationoradministration of the parish.

4. Serve as a resource to advise the pastor on significant expenditures before makingapurchaseor lease commitment.

5. Assist the pastor in soliciting assistance and/or information from the Diocesan FinanceOfficer and members of the Finance Office staff as appropriate.

D. INTERNAL CONTROLS

1. Assist in developing a system of internal controls in accordance with diocesan policy.2. Review/audit the financial reports for parish general operations, school and other

organizations with bank accounts to determine that proper accounting practices and internalcontrol procedures have been implemented and are being followed.

3. When a change of pastor or parish administrator occurs, assist with providing a completereport of the parish's financial condition and inventory of parish assets for the new pastor oradministrator (in accordance with Canon 1283,2).

ARTICLE VI- CONFIDENTIALITY

Members of the Parish Finance Council must observe strict confidentiality concerning all mattersdiscussed at Council meetings and/or provided to them in confidence. Council membersgenerally should not have access to the records of individual parishioners which pertain to theirfinancial contributions or other confidential information.


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